CategoryBusiness

How To Deal With A Breach Of Contract: Before, During & After

A breach of contract is where the contract is broken and this happens when a  particular term is not fulfilled without an excuse that is lawful. This could happen in various scenarios like a coworker not completing her job or an employee who does something that his job contract does not permit him to do.

Impact of a breach on a business

The breach of a contract is not a good thing and this wastes both time and money. Not every breach is equal and you deal with a contract breach you need to be aware of the same. The breaches are of four kinds. These are:

  • Material breach – This is serious when one does not perform his duties as per the contract
  • Fundamental breach – This is when the individual who is aggrieved can sue for the damages.
  • Anticipatory breach – This happens when the party can say that the contract is broken when the other party does not execute his part of the contract.
  • Minor breach – This is a partial breach. You cannot take to court here but you can sue the party for the monetary

To be able to build a case you need to have some facts established to take it to the breach of court. You must make sure that the contract has existed, the contract was broken, you lost money in the process, and that the defendant was actually responsible for your losses.

Remedies

You need to know of the remedies for the breach of contract. You may end up just getting money for the contract being broken.

These could be the compensatory damages, liquidated damages, attorney’s fees, consequential and incidental damages, and punitive damages.

The remedial options are also mentioned in the contract. It is important to review the contract carefully and then look for the limitations of the contract.

Read more on how to deal with the breach of contract on last mile distribution.…

What to Look for and Avoid When Signing a Home-Building Contract (2018)

Building your own home can bring your dreams to life if you find the right building contractor.  When you are comparing the options available there are various things to consider like the new house price per sqm as stated on buildsearchs website and the total cost quoted by each contractor. When you have narrowed down the contractor who would suit your requirements the most thorough research the home-building contract you would be signing. Find a licensed contractor with an insurance and also get in touch with the prior clients to get a better idea about the contractor’s methods. Hire professionals to verify the building plans as well as the legalities in the process. Check whether the building contract talks in detail about the scope of work. There should be a clear definition of the specifications and the allowed levels of deviation. This would ensure that when the contractor makes changes in the building plan or a few elements in the specification, later on, there would be a legal document to support your claims.

Here are a few things which should be avoided in the contract –

  1. Unclear timelines

There are timelines specified in most contracts. But the allowed reasons for delays or postponement of the completion date are missed out in some contracts. Avoid contracts without clarity on these conditions. Also, make sure that there aren’t too many flexibilities provided for the extension of timelines.

  1. Stringent payment terms

There should be a clear definition of the payment patterns and the relationship with the building progress. Avoid situations where payments are demanded as decided without the building progress not taking place as promised.

  1. Unclear or irrelevant warranty terms

Most people ignore this area. But make sure that you understand the terms of warranty and check whether the warranty timelines are actually practical. Coverage of the warranty terms after your move in date would be relevant.